Thor Industries Earnings 2020-04-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

tho-20200430

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended April 30, 2020.

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ____ to ____.

COMMISSION FILE NUMBER 001-09235

THOR INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

93-0768752

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

601 E. Beardsley Ave., Elkhart, IN

46514-3305

(Address of principal executive offices)

(Zip Code)

(574) 970-7460

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act

Name of each exchange

Title of each class

Trading Symbol(s)

on which registered

Common stock (Par value $.10 Per Share)

THO

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

As of May 31, 2020, 55,198,756 shares of the registrant’s common stock, par value $0.10 per share, were outstanding.

PART I – FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)

ITEM 1. FINANCIAL STATEMENTS

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	April 30, 2020		July 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	651,485	$	425,615
Restricted cash	3,480		25,647
Accounts receivable, trade, net	248,458		478,531
Factored accounts receivable	191,798		173,405
Accounts receivable, other, net	74,538		64,291
Inventories, net	867,647		827,988
Prepaid income taxes, expenses and other	51,372		41,880

Total current assets	2,088,778		2,037,357
Property, plant and equipment, net	1,079,676		1,092,471
Other assets:
Goodwill	1,396,401		1,358,032
Amortizable intangible assets, net	888,258		970,811
Deferred income tax assets, net	74,867		73,176
Equity investment in joint ventures	—		46,181
Other	84,310		82,418
Total other assets	2,443,836		2,530,618
TOTAL ASSETS	$	5,612,290	$	5,660,446

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	411,917	$	551,831
Current portion of long-term debt	16,960		17,370
Short-term financial obligations	43,500		44,094
Accrued liabilities:
Compensation and related items	102,375		135,560
Product warranties	257,877		289,679
Income and other taxes	61,920		61,483
Promotions and rebates	91,740		95,052
Product, property and related liabilities	17,703		17,595

Liabilities related to factored receivables	191,798		173,405
Other	70,480		62,256

Total current liabilities	1,266,270		1,448,325
Long-term debt	1,965,981		1,885,253
Deferred income tax liabilities, net	143,658		135,703
Unrecognized tax benefits	12,903		10,799
Other liabilities	111,966		85,138
Total long-term liabilities	2,234,508		2,116,893
Contingent liabilities and commitments
Stockholders’ equity:
Preferred stock – authorized 1,000,000 shares; none outstanding	—		—
Common stock – par value of $.10 per share; authorized 250,000,000 shares; issued 65,396,531 and 65,189,907 shares, respectively	6,540		6,519
Additional paid-in capital	432,020		416,382
Retained earnings	2,104,241		2,066,674
Accumulated other comprehensive loss, net of tax	(104,224)		(57,004)
Less treasury shares of 10,197,775 and 10,126,434, respectively, at cost	(351,909)		(348,146)
Stockholders' equity attributable to Thor Industries, Inc.	2,086,668		2,084,425
Non-controlling interests	24,844		10,803
Total stockholders’ equity	2,111,512		2,095,228
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,612,290	$	5,660,446

See Notes to the Condensed Consolidated Financial Statements.

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2020 AND 2019 (UNAUDITED)


	Three Months Ended April 30,						Nine Months Ended April 30,
	2020		2019		2020		2019
Net sales	$	1,681,735	$	2,506,583	$	5,843,653	$	5,553,135
Cost of products sold	1,476,102		2,214,153		5,072,803		4,911,853
Gross profit	205,633		292,430		770,850		641,282
Selling, general and administrative expenses	128,147		176,983		478,968		364,745
Amortization of intangible assets	24,079		25,259		72,645		50,376
Impairment charges	—		—		10,057		—
Acquisition-related costs	—		13,363		—		112,511
Interest income	847		2,547		2,796		5,444
Interest expense	26,868		35,509		82,127		37,244
Other income (expense), net	(6,157)		(2,340)		(5,123)		(6,937)
Income before income taxes	21,229		41,523		124,726		74,913
Income tax provision (benefit)	(1,555)		10,085		23,071		34,939
Net income	22,784		31,438		101,655		39,974
Less: Net loss attributable to non-controlling interest	(1,284)		(1,246)		(2,151)		(1,246)
Net income attributable to Thor Industries, Inc.	$	24,068	$	32,684	$	103,806	$	41,220

Weighted-average common shares outstanding:
Basic	55,198,756		55,063,473		55,163,943		53,515,491
Diluted	55,392,982		55,166,067		55,337,665		53,627,627

Earnings per common share:
Basic	$	0.44	$	0.59	$	1.88	$	0.77
Diluted	$	0.43	$	0.59	$	1.88	$	0.77




Comprehensive income (loss):
Net income	$	22,784	$	31,438	$	101,655	$	39,974
Other comprehensive loss, net of tax
Foreign currency translation adjustment	(25,245)		(34,183)		(36,154)		(34,183)
Unrealized loss on derivatives, net of tax	(7,763)		(3,781)		(11,709)		(3,781)

Total other comprehensive loss, net of tax	(33,008)		(37,964)		(47,863)		(37,964)
Total Comprehensive income (loss)	(10,224)		(6,526)		53,792		2,010
Less: Comprehensive loss attributable to non-controlling interest	(1,483)		(1,319)		(2,794)		(1,319)
Comprehensive income (loss) attributable to Thor Industries, Inc.	$	(8,741)	$	(5,207)	$	56,586	$	3,329

See Notes to the Condensed Consolidated Financial Statements.

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED APRIL 30, 2020 AND 2019 (UNAUDITED)


	Nine Months Ended April 30,
	2020		2019
Cash flows from operating activities:
Net income	$	101,655	$	39,974
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	71,966		47,134
Amortization of intangibles	72,645		50,376
Amortization of debt issuance costs	8,050		3,441
Impairment charges	10,057		—
Foreign currency forward contract loss	—		70,777
Deferred income tax provision (benefit)	19,312		2,218
(Gain) loss on disposition of property, plant and equipment	1,524		127
Stock-based compensation expense	14,425		14,118
Changes in assets and liabilities:
Accounts receivable	219,750		17,438
Inventories	(62,475)		145,049
Prepaid income taxes, expenses and other	(8,963)		(9,090)
Accounts payable	(137,668)		(95,849)
Guarantee liabilities related to former EHG subsidiaries	—		(105,343)
Accrued liabilities	(73,621)		(5,182)
Long-term liabilities and other	612		614
Net cash provided by operating activities	237,269		175,802
Cash flows from investing activities:
Purchases of property, plant and equipment	(77,302)		(83,749)
Proceeds from dispositions of property, plant and equipment	26,854		1,281
Business acquisitions, net of cash acquired	—		(1,658,577)
Foreign currency forward contract payment related to business acquisition	—		(70,777)
Equity investment in joint venture	—		(5,250)
Other	(5,239)		—
Net cash used in investing activities	(55,687)		(1,817,072)
Cash flows from financing activities:
Borrowings on term-loan credit facilities	—		2,095,018
Borrowings on revolving asset-based credit facilities	379,222		100,000
Payments on term-loan credit facilities	(199,301)		(1,732)
Payments on revolving asset-based credit facilities	(74,776)		(40,000)
Payments on unsecured notes	—		(84,728)
Payments on other debt	(10,358)		(70,319)
Payments of debt issuance costs	—		(69,220)
Regular cash dividends paid	(66,239)		(62,664)
Payments on finance lease obligations	(324)		(301)
Payments related to vesting of stock-based awards	(3,763)		(4,418)
Short-term financial obligations and other, net	532		(6,092)
Net cash provided by financing activities	24,993		1,855,544
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(2,872)		(2,610)
Net increase in cash and cash equivalents and restricted cash	203,703		211,664
Cash and cash equivalents and restricted cash, beginning of period	451,262		275,249
Cash and cash equivalents and restricted cash, end of period	654,965		486,913
Less: restricted cash	3,480		25,801
Cash and cash equivalents, end of period	$	651,485	$	461,112
Supplemental cash flow information:
Income taxes paid	$	51,281	$	69,872
Interest paid	$	75,709	$	24,714
Non-cash investing and financing transactions:
Capital expenditures in accounts payable	$	2,057	$	6,125

Common stock issued for business acquisition	$	—	$	144,168

See Notes to the Condensed Consolidated Financial Statements.


THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE AND NINE MONTHS ENDED APRIL 30, 2020 AND 2019 (UNAUDITED)

	Three Months Ended April 30, 2020
								Accumulated					Stockholders'
				Additional				Other					Equity		Non-		Total
	Common Stock					Paid-In		Retained		Comprehensive	Treasury Stock						Attributable		controlling	Stockholders'
	Shares	Amount		Capital		Earnings		(Loss)		Shares	Amount		to Thor		Interests		Equity
Balance at February 1, 2020	65,396,531	$	6,540	$	427,373	$	2,102,253	$	(71,415)	10,197,775	$	(351,909)	$	2,112,842	$	9,492	$	2,122,334
Net income (loss)	—	—		—		24,068		—		—	—		24,068		(1,284)		22,784
Restricted stock unit activity	—	—		297		—		—		—	—		297		—		297
Cash dividends $.40 per common share	—	—		—		(22,080)		—		—	—		(22,080)		—		(22,080)
Stock compensation expense	—	—		4,350		—		—		—	—		4,350		—		4,350
Other comprehensive (loss)	—	—		—		—		(32,809)		—	—		(32,809)		(199)		(33,008)

Acquisitions	—	—		—		—		—		—	—		—		16,835		16,835
Balance at April 30, 2020	65,396,531	$	6,540	$	432,020	$	2,104,241	$	(104,224)	10,197,775	$	(351,909)	$	2,086,668	$	24,844	$	2,111,512

	Nine Months Ended April 30, 2020
								Accumulated					Stockholders'
				Additional				Other					Equity		Non-		Total
	Common Stock					Paid-In		Retained		Comprehensive	Treasury Stock						Attributable		controlling	Stockholders'
	Shares	Amount		Capital		Earnings		(Loss)		Shares	Amount		to Thor		Interests		Equity
Balance at August 1, 2019	65,189,907	$	6,519	$	416,382	$	2,066,674	$	(57,004)	10,126,434	$	(348,146)	$	2,084,425	$	10,803	$	2,095,228
Net income (loss)	—	—		—		103,806		—		—	—		103,806		(2,151)		101,655
Restricted stock unit activity	206,624	21		1,213		—		—		71,341	(3,763)		(2,529)		—		(2,529)
Cash dividends $1.20 per common share	—	—		—		(66,239)

Price	58.24	EPS	3
Shares	55	P/E	18
MCap	3,216	P/FCF	10
Net Debt	1,578	EBIT	333
TEV	4,794	TEV/EBIT	14
TTM 2019-10-31, in MM, except price, ratios

10-Q	2020-04-30	Filed 2020-06-08
10-Q	2020-01-31	Filed 2020-03-09
10-Q	2019-10-31	Filed 2019-12-09
10-K	2019-07-31	Filed 2019-09-30
10-Q	2019-04-30	Filed 2019-06-10
10-Q	2019-01-31	Filed 2019-03-06
10-Q	2018-10-31	Filed 2018-12-06
10-K	2018-07-31	Filed 2018-09-20
10-Q	2018-04-30	Filed 2018-06-06
10-Q	2018-01-31	Filed 2018-03-07
10-Q	2017-10-31	Filed 2017-11-27
10-K	2017-07-31	Filed 2017-09-27
10-Q	2017-04-30	Filed 2017-06-05
10-Q	2017-01-31	Filed 2017-03-06
10-Q	2016-10-31	Filed 2016-11-28
10-K	2016-07-31	Filed 2016-09-26
10-Q	2016-04-30	Filed 2016-06-06
10-Q	2016-01-31	Filed 2016-03-07
10-Q	2015-10-31	Filed 2015-11-30
10-K	2015-07-31	Filed 2015-09-21
10-Q	2015-04-30	Filed 2015-06-04
10-Q	2015-01-31	Filed 2015-03-05
10-Q	2014-10-31	Filed 2014-12-01
10-K	2014-07-31	Filed 2014-09-25
10-Q	2014-04-30	Filed 2014-06-05
10-Q	2014-01-31	Filed 2014-03-06
10-Q	2013-10-31	Filed 2013-12-02
10-Q	2013-04-30	Filed 2013-06-06
10-Q	2013-01-31	Filed 2013-03-07
10-Q	2012-10-31	Filed 2012-11-26
10-K	2012-07-31	Filed 2012-09-26
10-Q	2012-04-30	Filed 2012-06-07
10-Q	2012-01-31	Filed 2012-03-08
10-Q	2011-10-31	Filed 2011-11-28
10-K	2011-07-31	Filed 2011-09-28
10-Q	2011-04-30	Filed 2011-06-08
10-Q	2011-01-31	Filed 2011-03-10
10-Q	2010-10-31	Filed 2010-11-30
10-K	2010-07-31	Filed 2010-09-29
10-Q	2010-04-30	Filed 2010-07-01
10-Q	2010-01-31	Filed 2010-03-08

8-K	2020-06-16
8-K	2020-06-08
8-K	2020-05-29
8-K	2020-04-06
8-K	2020-03-25
8-K	2020-03-23
8-K	2020-03-19
8-K	2020-03-09
8-K	2020-01-30
8-K	2019-12-16
8-K	2019-12-12
8-K	2019-12-09
8-K	2019-10-14
8-K	2019-10-14
8-K	2019-10-10
8-K	2019-09-30
8-K	2019-09-09
8-K	2019-07-23
8-K	2019-07-09
8-K	2019-06-17
8-K	2019-06-10
8-K	2019-03-21
8-K	2019-03-06
8-K	2019-02-01
8-K	2019-01-30
8-K	2018-12-17
8-K	2018-12-14
8-K	2018-12-13
8-K	2018-12-06
8-K	2018-10-11
8-K	2018-10-11
8-K	2018-09-20
8-K	2018-09-18
8-K	2018-06-20
8-K	2018-06-18
8-K	2018-06-06
8-K	2018-03-15
8-K	2018-03-07

EX-31.EXHIBIT 31.1	tho4302020exhibit311.htm
EX-31.EXHIBIT31.2	tho4302020exhibit312.htm
EX-32.EXHIBIT32.1	tho4302020exhibit321.htm
EX-32.EXHIBIT32.2	tho4302020exhibit322.htm

THO 10Q Quarterly Report

Thor Industries Earnings 2020-04-30